“Worst Slump In A Generation”: China Auto Sales Continue Historic Collapse
Auto sales in China have fallen for the 15th month out of 16 months in September. It’s the “worst slump in a generation”, according to Bloomberg, as the key Asian market continues to be the poster child for the global automotive recession.
The market fell 6.6% to 1.81 million total units, according to the China Passenger Car Association. The auto industry continues to be weighed down by a slowing global economy, the trade war and stricter emissions rules. The China Association of Automobile Manufacturers is forecasting a drop in vehicle deliveries to dealers in 2019, despite China trying several types of stimulus to drum up demand.
Both local manufacturers and global manufacturers have experienced these headwinds in China.
General Motors said late last week that third quarter deliveries in China were down 18% and local Chinese manufacturer BYD said sales were lower in September by 15%.
Additional data from Marklines shows that names like Mitsubishi, Mazda and Nissan continued mid-single digit declines, while Toyota and Honda were able to (barely) buck the trend.
Nissan announced on October 10 that it sold 134,713 units in September in China, reflecting a 4.6% y/y decrease in sales. September sales of the 7th-generation Altima, Lannia, Tiida, Kicks and Qashqai increased. Year-to-date (YTD) sales from January to September totaled 1,090,983 units, reflecting a 0.4% y/y decrease.
Toyota sold 143,100 units in September, reflecting a 1.6% y/y increase. YTD sales totaled 1,181,300 units, reflecting an 8.4% y/y increase.
Honda announced that its September sales were 138,056 units, reflecting a y/y increase of 4.0%. Sales of the Civic and Accord exceeded 20,000 units. Sales of the Accord, Odyssey, CR-V, Inspire and Elysion, all of which are equipped with the SPORT HYBRID, a highly efficient double-motor hybrid power system, totaled 13,270 units. YTD sales totaled 1,123,570 units, reflecting a 16.4% y/y increase.
Mazda announced that sales in September reached 20,619 units, reflecting a 5.9% y/y decrease. YTD sales totaled 161,742 units.
Additional data on Chinese auto numbers for September will be forthcoming, and we will update this post when applicable.